Oman LNG signs supply deal with TotalEnergies

DUBAI, Apr 22 (Reuters): Oman LNG and TotalEnergies, one of its shareholders, have signed a sale and purchase agreement to supply 800,000 metric tons per year of liquefied natural gas, the companies said on Monday.

TotalEnergies, which owns 5.54per cent of Oman LNG, will be supplied by the company for 10 years from 2025, they said in separate statements.

Oman LNG last week signed an agreement with Turkey's state gas grid operator Botas to supply about 1 million tons per annum (mtpa) of LNG for 10 years from 2025. It also signed a 10-year deal with Shell to supply 1.6 mtpa from 2025.

Founded in 1994 after the discovery of significant gas reserves, Oman LNG is 51per cent owned by the Omani government, 30per cent by Shell, 5per cent by Korea LNG, 2.77per cent each by Japan's Mitsubishi Corporation and Mitsui & Co, 2per cent by Thailand's PTTEP and 0.92per cent by Itochu Corporation. The company has production capacity of 10.4 mtpa.

The sale and purchase agreement with TotalEnergies finalises a deal announced in October for Oman LNG to extend supplies to shareholders including Shell and TotalEnergies for up to 10 years beyond 2024.

TotalEnegies has also made a final investment decision (FID) for Oman's Marsa LNG project, the French oil major said.